Got $14,000? Here’s How to Structure a TFSA for Lifelong Monthly Income

A $14,000 investment can feel small in a Tax-Free Savings Account (TFSA), especially if you’re at the $109,000 total contribution room. That is, until it starts paying you every month. That rhythm matters. Tax-free cash hits harder than taxable cash, and monthly distributions help you stay calm when the market throws a tantrum. Still, “monthly” does not automatically mean “safe.” An ideal monthly-income TFSA stock pays a sustainable distribution, grows rent or earnings over time, and keeps debt tight enough to handle higher rates. You want income, and you want resilience. So let’s look at some monthly payers while checking off those boxes.

DIR

Dream Industrial REIT (TSX:DIR.UN) looks relevant right now because warehouses and logistics space still sit at the centre of modern commerce. It owns industrial buildings across Canada, the U.S., and Europe, so it collects rent from tenants that need practical space to store and ship goods. The units have climbed toward the top of their recent range, with shares up 11% in the last year, and the trust offers a cash yield around 5.4%, paid monthly.

The latest earnings show why investors have warmed up. Dream reported diluted funds from operations (FFO) of $0.27 per unit in the third quarter and kept the distribution at $0.70 per year. It also reported a net asset value of $16.74 per unit, and the market price still sits below that level, which gives you a cushion. Leasing acts as the near-term catalyst, with strong rental spreads that can lift cash flow. Rates remain the key risk, because refinancing costs can rise and capped rates can pressure property values.

GRT

Granite REIT (TSX:GRT.UN) offers a different flavour of monthly income. It focuses on industrial properties too, but it leans into quality and consistency, which can matter more than chasing the biggest yield. The units have pushed to new highs over the last year, now up about 20% in the last year. That strength can feel boring, and boring often wins inside a TFSA.

Granite’s latest quarter also brought real progress. It delivered diluted FFO of $1.48 per unit and diluted adjusted FFO of $1.26 per unit, then raised its targeted annualized distribution to $3.55, or $0.2958 per month, starting with the December 2025 payment. On the outlook side, management guided to 2025 FFO per unit of $5.83 to $5.90 and AFFO per unit of $5.03 to $5.10. You won’t find a bargain-bin valuation here, though. When a unit price sits near record territory, future returns rely on steady execution, modest rent growth, and disciplined capital recycling.

AP

Allied Properties REIT (TSX:AP.UN) plays the “watch your step” role in this trio, and that can still fit a smart TFSA plan. It owns office properties in Canadian cities, and the market has punished that category as tenants rethink how they use space. The units have fallen recently, shares are down 20% in the last year, and that drop creates upside if the business stabilizes.

Earnings show both the problem and the plan. In the third quarter, Allied reported FFO of $0.456 per unit and AFFO of $0.423 per unit, and its AFFO payout ratio ran at 106.4%, which left little cushion. Management then cut the monthly distribution by 60% to $0.06 per unit for December 2025 and through 2026 to reduce debt and interest expense. That cut hurts income today, but it can protect income tomorrow. A catalyst could come from asset monetization, including its plan to sell the Vancouver data centre entitlement at 150 West Georgia, with a closing expected in the first half of 2026.

Foolish takeaway

So how do you turn $14,000 into “constant” monthly income without betting the farm on one name? I like a simple structure: $7,000 in Dream Industrial as the anchor, $4,900 in Granite for quality, and $2,100 in Allied as the smaller turnaround kicker. Here’s what that might look like.

COMPANYRECENT PRICENUMBER OF SHARESDIVIDENDANNUAL TOTAL PAYOUTFREQUENCYTOTAL INVESTMENTDIR.UN$13.05536$0.70$375.20Monthly$6,994.80GRT.UN$83.7558$3.41$197.78Quarterly$4,857.50AP.UN$14.04149$1.71$254.79Monthly$2,091.96

The real win comes later, when you reinvest those monthly payments and keep feeding the TFSA as new room opens each year.

The post Got $14,000? Here’s How to Structure a TFSA for Lifelong Monthly Income appeared first on The Motley Fool Canada.

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More reading

• Start Your Investing Year Right With 3 Dividend Stocks Anyone Can Own
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• This Safe 4% Dividend Stock Could Pay up Every Month
• The Ideal Canadian Stocks to Buy and Hold Forever in a TFSA
• 3 of the Best Canadian Stocks Investors Can Buy Right Now

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Dream Industrial Real Estate Investment Trust and Granite Real Estate Investment Trust. The Motley Fool has a disclosure policy.